10 Money Conversations to Have with Your Fellow Musicians
9 out of 10 musicians quit their dream of “going pro” because of financial reasons... I just made that number up but I bet you didn’t flinch when you read it. What if it’s not our talent but our planning that’s the problem here? The following is a good overview of some real financial stats for you to noodle on from Joshua Becker, writer for Becoming Minimalist
Nearly 70% of Americans have less than $1,000 in savings.
25% of Americans have no savings at all.
The average U.S. household owes $7,149 in credit card debt.
40% of Americans spend up to half of their income servicing debt.
Less than 1/3 of Americans use a budget.
These stats make it seem so obvious why money is the most common conflict for Americans. It’s also one of the leading cause of stress not to mention probably the leading dream career killer. The irony to all that is we are also living in one of the most, if not the most entrepreneurial economies in our history. Especially with the new world the internet created. Btw… another interesting stat is that as of Jan 2021, less than 60 % of the world's population has internet access. So in many ways we are still in the Wild West days of the World Wide Web.
As musicians we can sing a song that is so personal to our innermost feelings but clam up when talking about our finances. Just as a song lyric can be said in a way that inspires others, so can healthy money conversations. And the bottom line is if we don’t get control of our finances, our dream to be a musician, an artist, an entrepreneur can become unsustainable. Let’s not let each other lose our dreams because of bad financial management.
We need to have these conversations with each other, to learn from each other. So here are 10 conversation starters to have while you sit around for 2-hours after the unnecessarily early soundcheck.
10 musicians and money conversation starters:
1. What percentage of your income do you take home and what do you keep in the business? How did you decide on that amount?
2. Do you have a monthly payment on your equipment or gear? How did you decide how much you were going to spend?
3. Are you currently saving money for retirement? Are you happy with how much you are saving? When did you start?
4. Do you have health insurance? Can I ask how much you pay for it? Who is the provider?
5. Are you doing anything to pay off school loans, credit cards, car loans or other unsecured debt early?
6. Do you set a financial budget for your biz? What has worked well for you?
7. Do you have a process you use for decisions on accepting/bidding on work?
8. Do you invest any money in real estate or the stock market? Where do you go to find advice?
9. What is the best piece of financial advice you’ve ever received?
10. What have you learned from your financial experience in the music business?